Dollarama profit jumps 32 as discount retailer boosts sales and prices

MONTREAL — Dollarama Inc. had a net profit of $49.8-million in its second quarter, up 32% from the comparable period last year, as the Montreal-based discount retailer benefited from higher sales and thicker profit margins.The profit amounted to 66 cents per diluted share in the 13 weeks ended July 29, up from $37.6 million or 50 cents per share in the comparable period last year.Dollarama’s revenue was up 13.8%, rising to $441 million from $387.5 million for the corresponding period last year.Dollarama originally sold products for a dollar each but now offers items of up to $3 — a move that has helped boost its revenue and margins.The Montreal-based company has also grown by expanding the number of stores in its network, which now total 735 locations across Canada.Comparable-store sales grew 7.3% from the second quarter of last year’s fiscal 2012, showing organic growth. The company also increased the number of stores by 55, or 8.1%, over the 12-month period.Profit margins improved to 36.9% of sales, up from 36.7%.“We are very pleased with our second quarter financial and operating results,” Larry Rossy, Dollarama’s chairman and chief executive officer, said in a statement.“Our strong comparable store sales are a good indicator that our customers appreciate our great merchandise value and our diverse product offerings.”

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